Patrizia Luchetta’s Post

🌍 Standards in Sustainability Reporting: ESRS E1 and IFRS S2 🌍 Two important standards have been established in the field of sustainability reporting, aiming to enhance the transparency of companies' environmental performance and address climate-related risks. ESRS E1 was introduced in 2022, while IFRS S2 followed in 2023, and both play a crucial role in the European Union's plan to become the first climate-neutral continent. ESRS E1 (European Sustainability Reporting Standards - Environment 1): The goal of the ESRS E1 standard is to promote the measurement and reporting of companies' environmental performance. Key areas include emissions, water usage, waste management, and biodiversity protection. This standard helps companies provide more accurate and comparable data on their environmental performance. IFRS S2 (International Financial Reporting Standards - Sustainability 2): The IFRS S2 standard focuses on sustainability reporting, with particular attention to financial risks and opportunities related to climate change. This standard assists companies in identifying and reporting the impacts of climate change on their business activities, thereby supporting investors and other stakeholders in making better decisions.These standards are essential for achieving sustainability goals and increasing corporate transparency. The European Union aims to be the first climate-neutral continent by 2050, and the implementation of ESRS E1 and IFRS S2 is a significant step towards this ambitious goal.If you would like to learn more about these standards or have any questions, I am happy to help! #sustainability #ESRSE1 #IFRSS2 #environmentalprotection #climatechange #corporatereporting #greencontinent

A wonky story to start your week... The harmonization of reporting standards continues. More than half the world (by GDP) is moving toward the International Sustainability Standards Board (ISSB) standards for sustainability disclosure. (link in first comment) This comes with support from the International Organization of Securities Commissions (IOSCO) and the release from the IFRS Foundation of new "Jurisdictional Guidance" on how to adopt or use the ISSB standards in your country. Phew, that was a lot of acronyms. Despite legitimate criticisms of ISSB for gaps and weaknesses, the world is moving towards a unified approach to non-financial disclosure. Since this issue consumes so much time and energy in corporate sustainability departments, a single global set of standards is overall a good thing, especially for multinationals. Sustainability reporting is currently chaotic, but this seems about right. It took decades, if not centuries, to develop financial reporting standards, and they continue to evolve. We should progress faster this time, and can improve the standards while getting back to advancing environmental and social issues for a better world. #ESGreporting #ESG #Sustainability

Slowly but surely putting the sustainability reporting in order!

The role of standards in driving sustainability is one that a lot of people don't think about at first. Learn more at our Master of Arts in Sustainable Design program, our all-online program at MCAD. Learn how we use standards in Design for Sustainability.

Harmonizing Sustainability Reporting: A New Era for Corporate Disclosures Exciting news from the IFRS Foundation’s International Sustainability Standards Board (ISSB)! Today, the ISSB announced significant steps to streamline sustainability reporting, focusing on corporate climate transition plans and value chain GHG emissions measurement. Key highlights: - Transition Task Force: IFRS Foundation will assume responsibility for the Transition Task Force disclosure framework. - GHG Protocol Agreement: Ensuring compatibility between ISSB’s and GHG Protocol’s reporting standards. Launched at COP26 in November 2021, the ISSB aims to provide a global baseline for sustainability disclosures, reducing the complexity of multiple initiatives and fostering consistent understanding of sustainability risks and opportunities. Notable milestones: - Consolidation: Bringing together the Climate Disclosure Standards Board (CDSB), International Integrated Reporting Council (IIRC), and Sustainability Accounting Standards Board (SASB). - IFRS S1 and S2 Standards: Inaugural general sustainability and climate reporting standards. - Transition Plan Taskforce: Framework for companies to report on climate transition plans. ISSB Chair Emmanuel Faber emphasized the importance of this collaboration for an effective sustainability disclosure system in capital markets. 🌿 What’s Next? The ISSB's two-year work plan will prioritize connectivity between sustainability and financial disclosure standards, interoperability with other standards, and support for IFRS S1 and S2 implementation. This move is a monumental step towards standardized, transparent sustainability reporting, aiding companies globally in their journey towards a sustainable future. #Sustainability #CorporateReporting #ClimateAction #GHGEmissions #IFRS #ISSB #SustainabilityStandards #ClimateTransition #ESG #SustainableFinance #CorporateGovernance

IFRS issues new guide for voluntary sustainability reporting. 📰 The IFRS Foundation's new guide helps companies meet investor demand for sustainability reporting including climate risks, specifically those operating in regions without ISSB regulatory obligations. As over 20 jurisdictions covering 55% of global GDP and half of global greenhouse gas emissions have committed to using or introducing ISSB standards, major investors like BlackRock and Vanguard have encouraged the adoption of the new guide. ISSB Chair Emmanuel Faber stated that “with many frameworks and standards now consolidated into the ISSB, the voluntary application guide helps companies navigate from their current reporting practices to applying ISSB Standards, providing a cost-effective route for companies to provide decision-useful, assurable financial information to investors." Full article 👉 https://bit.ly/3zpDtYp New guide 👉 https://bit.ly/3TMb8lU #ClimateRisk #SustainabilityReporting #Resilience #Adaptation

The International Sustainability Standards Board is a standard-setting body established in 2021–2022 under the International Financial Reporting Standards (IFRS) Foundation. They are working on developing a comprehensive set of sustainability reporting standards. These standards aim to provide globally consistent and comparable information on environmental, social, and governance (ESG) matters. BSD will give an introductory webinar on two standards from ISSB (the International Sustainability Standards Board) IFRS S1 sustainability standards & IFRS S2 sustainability standards. This orientation will introduce the participant to the first 2 Sustainability standards introduced by the IFRS, namely S1 and S2. This has replaced the TCFD and has also been adopted in the new draft sustainability reporting guidelines released by the Philippine SEC. We'll unpack the first 2 Sustainability standards (S1 and S2) introduced by IFRS. Say goodbye to TCFD as we delve into the latest draft sustainability reporting guidelines by the Philippine SEC. 📝 What's Included: IFRS S1 & S2 Sustainability Standards 🗓️ Date: July 29 💻 Online Learning Session 💰 Rates: P800 for members, P1000 for non-members Ready to level up your sustainability game? Register now: https://lnkd.in/grYn7Zbv Got questions? Shoot us a message or email [email protected] to learn more or reserve your spot! Let's pave the way to a greener future together. #Sustainability #ISSB #BSDTraining #BSDTrainingSession

The IFRS Foundation and EFRAG have collaborated to release guidance material showcasing the alignment between International Sustainability Standards Board (ISSB) Standards and ESRS, empowering companies to effectively apply both sets of standards, particularly focusing on climate-related disclosures. This represents a significant step towards simplifying compliance processes and enhancing transparency in sustainability reporting. XBRL International, Inc. is also making strides in facilitating these standards alignments. Through the creation of mechanisms that enable ISSB and EFRAG taxonomies to align, XBRL International is paving the way for interoperability in reporting. One such mechanism is the mapping between taxonomies, ensuring comparability of disclosures reported against different standards. This mapping, known as concordance, allows for seamless integration of sustainability data across different taxonomies. At CoreFiling, we fully support these standard alignments and are closely monitoring all XBRL International technical developments. This ensures that our applications and True North platform are primed and ready to assist our clients and partners in navigating the evolving landscape of ESG reporting. Let's embrace these advancements together and pave the way for a more transparent and sustainable future! https://lnkd.in/dRZjrA3 #esrs #xbrl #esg #sustainabilityreporting #transparecy #csrd

The Australian Accounting Standards Board (AASB) has signalled that they will be adopting IFRS S1, the broader sustainability disclosure requirements of the ISSB Standards, for Australian entities to use on a voluntary basis. Currently, the AASB has adopted IFRS S2 under the draft Australian Sustainability Reporting Standards ahead of mandatory climate reporting beginning for certain entities on 1 January 2025. This is focused on climate only and does not extend to broader sustainability disclosures (for example, broader environmental concepts such as resource use and waste management and social concepts such as human rights breaches). The current proposed amendments to the Corporations Act 2001 (Cth) to introduce mandatory climate reporting have left space for broader sustainability reporting to become mandatory in Australia. It will be interesting to see if this is implemented as mandatory climate reporting gets underway in 2025 and how this impacts other mandatory reporting requirements in Australia where there may be crossover in disclosure requirements (for example, modern slavery statements being produced under the Modern Slavery Act 2018 (Cth)). #ESG #climatereporting #ISSB #ASRS

📊🔄 Enhancing Sustainability Reporting: WSBI-ESBG enthusiastically supports interoperability initiative 📑Today, the IFRS Foundation and EFRAG have jointly released guidance material illustrating the high level of alignment achieved between the International Sustainability Standards Board (ISSB) IFRS Sustainability Disclosure Standards and the European Sustainability Reporting Standards (ESRS). 🔍 This guidance provides valuable insights for companies on efficiently applying both sets of standards, including a detailed analysis of alignment in climate-related disclosures. Key points include the definition of financial materiality, common defined terms, and a high degree of consistency in climate-related #disclosures. 🤝 The joint interoperability guidance ensures that entities starting with either ESRS or ISSB Standards can comply with climate requirements from both sets, facilitating interoperability between the standards. 💼 WSBI-ESBG fully endorses this crucial initiative, in view of: 1. Simplifying reporting frameworks to lighten European Union companies' burdens 2. Enhancing investor insight for smarter capital allocation 3. Championing global sustainability through best practices Together, let's pave the way for a more sustainable future! Read the full guidance here: https://rb.gy/f5hhqi #SustainabilityReporting #Interoperability #Alignment #guidance #frameworks